What is the tax treatment difference between "depreciation recapture" and "depreciation unrecapture"?

[kwyp]

 It is heard very often about a concept called "deprecation recapture". 

On K-1 form, there also has a line called "unrecaptured section 1250 gain".

What is the difference between the two?

Is there any tax treatment difference between the two as well? 

[sjrcpa]

Unrecaptured 1250 gain is taxed at a maximum rate of 25%. It  is gain on an asset sale up to the amount of depreciation claimed on that asset.

[Strongsilence-CPA]

1250 - real property

1245 - personal property.

[kwyp]

Hi sjrcpa, 

Maxinum tax rate for UNrecapture depreciation is 25%. 

What is the maxinum tax rate for recapture depreciation? 

[sjrcpa]

The taxpayer's ordinary income tax bracket.

[kwyp]

Is it taxpayer's ordinary income effective tax rate or marginal tax rate?  

[abctax55]

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[taxmo]

“Unrecaptured section 1250 gain" is a very confusing term, but it really means recapturing the depreciation of 1250 property (real estate).  

So why isn't it just called "section 1250 recapture"?  Technically, that only refers to property that used accelerated depreciation.  But section 1250 property hasn't been eligible for accelerated depreciation since the mid 80s, so you may have section 1250 recapture if it's an old property that they have owned for a long time.  But these days you usually only have these two types of depreciation recapture:

• “Unrecaptured section 1250 gain":  For real property that didn't use accelerated depreciation.  Taxed at your ordinary income tax rate, but capped at a maximum of 25%. 
• "Section 1245 recapture":  For everything else.  Taxed at your ordinary income tax rate, with no upper limit.